
                         THE VIRGINIAN-PILOT
                 Copyright (c) 1994, Landmark Communications, Inc.

DATE: THURSDAY, June 2, 1994                    TAG: 9406020503 
SECTION: BUSINESS                     PAGE: D8    EDITION: FINAL  
SOURCE: By PHIL MURRAY, STAFF WRITER 
DATELINE: 940602                                 LENGTH: Short

FOR SUMMER, GROWTH LOOKS GOOD \

{LEAD} The Hampton Roads economy may be entering a sustainable expansion after moving in fits and starts for several years, a regional economist said Wednesday.

Encouraged by the April employment numbers, Virginia Wesleyan College professor David G. Garraty said the local economy appears to be growing at a steady pace despite ongoing defense cuts.

{REST} ``I'm getting a little more optimistic heading into the summer,'' Garraty said. ``I think we are gearing up for a good tourist season.''

An index compiled by Garraty that measures economic performance in Hampton Roads increased in April for the third straight month. The index, based on monthly job and wage data, rose at an annual rate of 3.2 percent in April.

After adjusting the employment numbers for seasonal factors, Garraty found considerable strength in wholesale and retail trade, finance, real estate and construction. Even manufacturing - depressed by shipbuilding layoffs - rose 5.7 percent on a seasonally adjusted basis, Garraty said.

With the expectation of improved tourist activity this year, Garraty said the local economy should be able to sustain its growth through the summer.

The rosy outlook, however, was tempered by the reality of a shrinking defense industry. Garraty said military cuts will continue to keep economic growth in Hampton Roads below the state and national rates.

{KEYWORDS} ECONOMY

by CNB